06:52 AM EDT, 06/18/2024 (MT Newswires) -- The US dollar rose against most major trade partner currencies in Europe on Tuesday as government bond markets softened and risky assets like stocks recovered off prior lows heading toward the release of US retail sales figures for June.

Switzerland's franc and the Australian dollar both bucked the trend in G10 on Tuesday when rising against an otherwise stronger US dollar, which notched its largest increases in relation to the New Zealand dollar and Norwegian krone.

Dollar strength was less widespread in relation to the broader G20 basket, however, as the Mexican peso, South African rand, Turkish lira and Indian rupee all managed to eke out notable gains over the greenback.

The dollar was higher in most parts but with its strength ebbing from early in the European session after falling government bond markets lifted yields modestly, and as stock indexes recovered from prior losses across Europe and much of Asia.

There was only limited economic data out in Europe and Asia overnight, leaving market attention fixed on the 8:30 am ET release of US retail sales figures for June, which are expected to show no change MoM and up 3% YoY.

A quick summary of foreign exchange activity heading into the European lunch hour and US open:

In Europe, EUR/USD was quoted 0.19% lower around 1.0719 after ebbing from highs of 1.0740 overnight and failing to sustain the brief recovery that followed when the ZEW Institute said its economic sentiment index for the euro area rose to 51.3 in June, from 47.0 previously. The outcome was stronger than the expected reading of 47.8 but the German sentiment index barely moved in June and initial recovery of the euro following the report was quick to dissipate. The next calendar highlight for the euro area is the release of S&P Global PMI surveys of the manufacturing and services sectors on Friday.

Elsewhere in Europe, GBP/USD was quoted 0.23% lower around 1.2683 after falling to sustain Monday's recovery from lows around 1.2658 and falling from highs near 1.2714 overnight in Asia. There was no economic data out in the UK where the next calendar highlight is Wednesday's release of inflation figures for June. The market will pay particularly close attention to the services sector inflation rate on Wednesday, which remained around 6% in May.

In Asia, USD/JPY was quoted 0.24% higher around 158.07 after rising sharply from 157.50 at the Asia open and continuing its recovery off Monday's lows around 157.15. The yen weakened persistently throughout Asian and European trade despite supportive comments from Bank of Japan Governor Kazuo Ueda, who told parliament that an increase in interest rates is a possible outcome for the July meeting and that the decision on rates would be taken separately to any decision on whether to begin quantitative tightening. The next calendar highlight for Japan is the release of national Consumer Price Index figures on Friday.

Back in North America, USD/CAD was quoted 0.24% higher around 1.3747 after climbing from 1.3728 around the European open and lows of 1.3710 around the Asia open. There was no economic data released in Canada overnight but the Loonie will be sensitive to the release of US retail sales figures for June on Tuesday. The next calendar highlight in Canada is the release of Canadian retail sales figures for April on Friday.